(CBS) Foreign policy is McCain's specialty, but at least for now most voters say they worry about the economy.

"Back in 1992, Bill Clinton had a sign hanging in his campaign war room, a pretty famous sign. Do you recall what it said?" Pelley asked.

"It's the economy, stupid. Yes," McCain replied.

"Everywhere we went in Texas with you it was about the war and foreign policy and I wondered in those town hall meetings if you had an understanding of how concerned people are about the economy, about whether they can keep their homes, about whether they can keep their jobs?" Pelley asked.

"Look, these are tough times. These are very tough times," McCain said.

Asked how he would characterize the mortgage mess, McCain said, "I think it’s a disaster, but let me hasten to add, Scott, I think the fundamentals of our economy are still strong."

"What do you do for the person who just saw gasoline go from three and a quarter to three fifty on its way to $4?" Pelley asked.

"I would love to tell you that I have an immediate answer for that. And I don't. The only way we are going to fix it is to eliminate our dependence on foreign oil. We've got to have a crash program, a all out effort," McCain said. "But, I can't give you straight talk and tell you that tomorrow I can change the price of a gallon of gas."

On taxes, McCain voted against the Bush tax cuts originally; now he wants to make them permanent. But he says his own party has let spending go wildly out of control.

"Senator Clinton says that providing universal healthcare is quote 'a moral responsibility.' Do you agree?" Pelley asked.

"Well, I think that's one of the big differences we have about the role of government. If you think that the government should mandate anything to the American people than besides a safety net, and I don't view it as a safety net. I view Medicare and Medicaid as a safety net," McCain said. "But to mandate that all Americans are required to do something then that's just not within the fundamental philosophy that I have about the role of government in America."

Instead of government insurance, McCain proposes a $5,000 tax credit so families can buy insurance of their own.

On immigration, he says that the borders should be secured first but, despite criticism from conservatives, he told 60 Minutes this about illegal immigrants: "If they complied with some very stringent and rigid requirements, they could find themselves on a path to citizenship."

On Capitol Hill he gets credit for reaching out to Democrats on big issues like immigration and campaign finance reform. But his fellow politicians are critical of his high minded condemnation of money in politics.

"You point your finger at other senators and claim that there is a culture of corruption on Capitol Hill. But you take money from lobbyists who have business before your committee as other senators do. So, how is it that you call the system corrupt?" Pelley asked.

"Well, one of the reasons why I call the system corrupt is because we have members of Congress who are in jail, who are former members of Congress. But it’s not the individuals, it's the system we have today. I believe that I serve with honorable men and women. And I believe that the people who bring their case to government, the overwhelming majority of them are honorable people," McCain said.

"The lobbyists?" Pelley asked.

"Retirees have a lobbyist. Firemen have a lobbyist. Your business has a lot of lobbyists," McCain said.

McCain claims he’s never done a favor for money. He believes he’s being held to a higher standard because of his criticism.

Produced By Tom Anderson
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